Even During the Golden Years the IRS Is Still After Your Gold
People find numerous ways to pay for their expenses in retirement. Some live off of savings. Some have pensions. Many depend on Social Security, and others work “till they drop,” so to speak. For most people, the strategy is to use a combination of these.
Because of the great variety of income sources in retirement, nearly every form of taxation comes into play in retirement tax planning. There is the taxation for ordinary income, tax-exempt income, preferred income, deferred income, potentially and partially taxed income, etc. Each of these income sources, as you know, comes with its own set of rules that govern how it is taxed.
Many of these sources of ...